Fi515 Week 1

Problems
2-6
Net Income….$50 millionCurrent Year contain Earning 810Million LessPrevious Retained Earning- 780million
RE…..$810 Million 30millionless(prenominal)Net Income50million
Previous RE…..$780 million Left for Dividends paid20million
Dividends Paid $20 million

2-7
Corpo compute Tax Liability b atomic number 18(a) tax rate=34%
Taxable income 365000 Avg Tax rate=124100/365000=34%
Interest 50000 afterwards Tax Income=240900
Dividends recd 15000Net Income=After tax income- evoke-dividends paid+ dividends recd
Dividends paid 25000=180900
Income Taxes ={113900+[.34*(365000-335000)]}=124100

2-9
Corporate After-Tax Yield

Mini fictitious character:
a. Why is corporal finance important to all managers?
Because favored companies have skilled people at all levels inside(a) the company, strong relationships with groups outside the company and enough championship. Companies need funding to execute their plans ans support their operations.
b. Organizational forms from plumpup to corporation, advantages and disadvantages?

Companies start out normally as a proprietorship, usually have by one person, who obtains all the licenses.



Some advantages argon it is liberal and inexpensive to form, few government regulations and income is not subject to corporate taxation. There are 3 limitations: difficult to obtain capital, ain liability, and life of proprietorship is limited to the life of its founder.
Partnership is when 2 or more people or entities conduct a non-corporate business for profit. The advantages and disadvantages are the same as those of proprietorship.
Corporations are wakeless entities created under state laws and it is separate and distinct from its owners and managers. There are advantages such as unlimited life, easy transferability of ownership interest and limited liability. Some disadvantages are corporate earnings are subject to double taxation and there are needs...If you motivation to get a full essay, order it on our website: Orderessay



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